The department store chain Macy’s announced Wednesday that it has achieved four quarters in a row of comparable sales growth, as the retailer credits changes to its product selection and improved customer service for connecting with shoppers.
The New York-based company updated its annual projections upward Wednesday, and stock prices climbed more than 3% before markets opened.
“We’re off to a strong start to the year,” said CEO Tony Spring, who is in the third year of an attempted turnaround of the storied retailer. “We’re operating with discipline and focusing on what matters most — our customers.”
Sales at existing online platforms and physical locations increased 3% in the first quarter. This exceeded the 1.8% growth seen in the fourth quarter of 2025 and marked the strongest first quarter performance for such sales in four years, according to the company. Main Macy’s locations saw comparable sales rise 1.6%, while Bloomingdale’s stores achieved a 10.2% increase, setting a record for first-quarter sales volume. Bluemercury, the beauty retailer also under Macy’s ownership, recorded a 6.4% comparable sales increase.
These results represent another positive development for Macy’s, which had experienced a prolonged period of declining sales. Since Spring assumed leadership in early 2024, the company has shuttered underperforming locations and invested millions to upgrade remaining stores. The retailer has enhanced customer service operations and worked to distinguish its luxury offerings from competitors through exclusive products.
Industry experts have partially attributed Bloomingdale’s strong performance to the Chapter 11 bankruptcy filing of Saks Global, which operates Saks Fifth Avenue and Neiman Marcus.
However, Macy’s continues to face the same obstacles confronting the broader retail industry.
American retailers have spent recent months dealing with economic uncertainty, including President Donald Trump’s tariffs and the effects of rising fuel costs due to the Iran war. Regular gasoline prices have remained above $4 per gallon since March, according to AAA data. A gallon now costs 40% more than before the conflict began. Recent earnings reports from major retailers highlight how consumers face mounting financial pressure as they cope with higher costs for fuel, food, utilities and nearly all other goods.
In a Wednesday phone interview with The Associated Press, Spring said the company is carefully watching developments given economic uncertainty, but has not observed any notable reduction in customer spending since fuel prices began climbing.
He believes Macy’s enhanced product mix and value proposition are resonating with shoppers. The company has seen robust sales in formal dresses, men’s footwear, women’s dresses and perfumes. Spring did note weak furniture sales, as consumers continue delaying major purchases.
“Despite the choiceful consumer, despite all the things that are going on that we read about every day in terms of the geopolitical, macroeconomic environment, fashion and newness and the consumer’s desire to indulge is still happening,” Spring told The AP. “And we’re very pleased that we are taking share.”
Spring observed that affluent customers maintain their spending habits, supported by stock market gains, while middle-income shoppers remain more cautious. He noted that lower-income customers continue facing challenges but are gravitating toward Macy’s sections featuring deeply discounted items.
The company posted net earnings of $63 million, or 23 cents per share, for the quarter ending May 2. Adjusted earnings per share reached 13 cents, exceeding Wall Street expectations by ten cents, according to FactSet data.
This compares to a $38 million profit, or 13 cents per share, in the same period last year.
Total sales increased to $4.68 billion from $4.6 billion in the prior year period. This quarter’s revenue also surpassed Wall Street forecasts.
The retailer now projects annual sales between $21.5 billion and $21.75 billion, raising its previous March guidance of $21.4 billion to $21.65 billion. Macy’s also revised its comparable sales outlook upward, now expecting growth between 0.5% and 1.2% on Wednesday. The company’s March prediction called for a decline of 0.5% to growth of 0.5%.
The company also raised its annual earnings per share forecast to a range of $2 to $2.20, up from previous guidance of $1.90 to $2.10 per share.
For the complete fiscal year, analysts had projected $2.09 per share on revenue of $21.6 billion, according to FactSet analysts.
